# Rate of Return

The **annual rate of return** is the percentage change in the value
of an investment.

*For example:*
If you assume you earn a 10% annual rate of return,
then you are assuming that the value of your investment will increase by
10% every year. So, if you invest
$1,000 for 1 year, then
your investment would be worth $1,100 at the end of
the one year period, before subtracting expenses.

*http://www.sec.gov/investor/tools/mfcc/rate-of-return-help.htm*